3 May 2016
EUR/GBP outlook remains negative - FXStreet
Ross Burland, Analyst at FXStreet.com, suggests that the EUR/GBP outlook remains negative in the bearish price action on the charts.
Key Quotes
“EUR/GBP has seen a recent bearish trend take fold as the clock is ticking at the start of a new month and we head ever closer to the EU referendum and the possibility of a Brexit is actually looking a little lower, fuelling a bid in the pound while the weakening in U.S. dollar also underpins a recovery in Sterling.
Near-term rallies could find resistance at circa 0.7920/50 and at late March highs where shorts could be added on rallies for a fade into the continuation of the downside targeting 9th of March lows at 0.7651. "We view the currency pair as having topped at .8116 and it eroding the 0.7755 January high. We look for further slippage to the 0.7654 area. It is where the March low can be seen," explained Karen Jones, chief analyst at Commerzbank.”
Key Quotes
“EUR/GBP has seen a recent bearish trend take fold as the clock is ticking at the start of a new month and we head ever closer to the EU referendum and the possibility of a Brexit is actually looking a little lower, fuelling a bid in the pound while the weakening in U.S. dollar also underpins a recovery in Sterling.
Near-term rallies could find resistance at circa 0.7920/50 and at late March highs where shorts could be added on rallies for a fade into the continuation of the downside targeting 9th of March lows at 0.7651. "We view the currency pair as having topped at .8116 and it eroding the 0.7755 January high. We look for further slippage to the 0.7654 area. It is where the March low can be seen," explained Karen Jones, chief analyst at Commerzbank.”